Digi International Inc. (DGII) vs Viavi Solutions Inc. (VIAV)

Digi International Inc. and Viavi Solutions Inc. are both Communication Equipment companies. Viavi Solutions Inc. is the larger, with a market value of $9.3B against $2.9B — 3.2× the size. Viavi Solutions Inc. has negative trailing earnings, so its P/E is not meaningful; Digi International Inc. trades at 60.2×. Viavi Solutions Inc. grew revenue faster over the last twelve months: 40.0% against 20.3%. Digi International Inc. has the higher net margin (9.63% vs −2.00%) and the higher return on invested capital (5.76% vs 4.58%). Across the 21 metrics below, Digi International Inc. leads on 18 and Viavi Solutions Inc. on 3.

Valuation

Metric DGII VIAV Communication Equipment median
P/E 60.23 n/m 33.61
P/S 5.84 6.15 2.16
P/B 4.32 6.45 2.40
Price to free cash flow 21.70 56.11 25.02
EV/EBITDA 27.04 57.93 13.78
EV/Sales 6.03 6.14 2.27
Earnings yield 1.66% (0.34%) (0.65%)
Free cash flow yield 4.61% 1.78% 1.61%

Profitability

Metric DGII VIAV Communication Equipment median
Gross margin 63.82% 57.66% 39.47%
Operating margin 13.94% 6.92% 2.39%
Net margin 9.63% (2.00%) (0.74%)
Free cash flow margin 26.92% 10.96% 1.39%
Return on equity 7.46% (2.73%) (1.91%)
Return on assets 5.62% (1.29%) (0.20%)
Return on invested capital 5.76% 4.58% 0.72%

Growth

Metric DGII VIAV Communication Equipment median
Revenue growth (TTM) 20.26% 40.03% 11.48%
EPS growth (last fiscal year) 77.05% (186.67%) —
Revenue growth, 5-year CAGR 9.03% 4.84% 4.92%
Net income growth, 5-year CAGR 37.14% 0.00% 0.00%

Health

Metric DGII VIAV Communication Equipment median
Debt to equity 0.16 0.44 0.06
Current ratio 1.13 1.85 2.01
Net debt to EBITDA 1.52 (0.07) 0.67

Dividend

Metric DGII VIAV Communication Equipment median
Dividend yield — — 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric DGII VIAV Communication Equipment median
Market cap 2.91b 9.30b 563.45m

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